The Hindu Business Line : Gold zooms; silver at 27-year high

Mumbai, Feb. 21 Gold prices hit fresh high in international and the local market. In the London spot market gold hit an all time high of $949.60 an ounce tracking which in the local market, standard gold was quoted at Rs 12,200 per 10 gm, while pure gold was quoted at Rs 12,255/10 gm on Thursday.

A combination of stronger than forecast US Consumer price data suggesting outlook of a stronger inflation and oil cracking $100 per barrel level propelled investor/speculator interest in gold taking it to new high, according to Mr. Ross Norman of TheBullionDesk.com.

While TheBullionDesk stands by its forecast that suggests gold will hit a high of $1250/oz once during this year, Mr. Paul Walker of GFMS said gold would peak at $1001/oz in 2008. Meanwhile, people rushed to the scrap dealers with their old and worn out gold ornaments.

Sale of scrap gold by households to the tune of around 60 to 70 kg a day had been the source of gold recently, thus keeping demand for imported gold at bay, said a scrap dealer at Jugraj Kantilal & Co.

Silver prices also reached their 27-year high of $18/oz in the international market. In the Indian market silver was quoted at Rs 22,555 per kg on Thursday up from Rs 22,135 per kg on Wednesday. On year to date basis silver has rallied 21 per cent.

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